Tata Kelola

Tata Kelola


The governance philosophy is simple: govern as few system parameters as possible. This limited view on governance means relying on social upgrades— deploying a new instance of the system—rather than governed contract upgrades.

Social upgrades are akin to hard forks. They require an overwhelming economic consensus, as a new token contract and other new contracts will need to be coordinated and agreed upon across the market. The bar for a social upgrade is much higher than other common governance paradigms, and will become even more difficult as an instance of the system ages.

The limited governance included in the system design follows a few principles:

• Governance should only impact new deposits, whenever possible. Each deposit should behave predictably over the long run, regardless of governance choices. • All governance should abide by a time delay if possible, giving users time to respond to changes in the system. • The governance role should be assignable to a credibly neutral third party or eventual decentralization.

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